A delegation headed by the Director-General of the OPEC Fund for International Development (OFID), Mr Suleiman J Al-Herbish, was in Marrakesh, Morocco, to attend the annual meetings of the African Development Bank. On the sidelines of the meetings, Mr Al-Herbish signed two public sector loan agreements with partner countries Morocco and Ethiopia. In addition, a line of credit (LOC) agreement was signed with the Eastern and Southern African Trade and Development Bank II (PTA Bank). The agreements are as follows:
Morocco. US$60 million. Rural Electrification. The project is part of a larger program aimed at providing access to electrical power to over 2,800 villages, representing 86,000 households and a population of about 516,000 people. The beneficiaries are living in some of the most remote and vulnerable areas of Morocco. A particular focus will be placed on connecting communities residing in mountainous zones and areas that experience harsh climatic conditions. The loan agreement was co-signed by Mr Ali Fassi Fihri, Director-General of the National Office of Electricity and Water. HE Nizar Baraka, Minister of Economy and Finance of Morocco, signed the guarantee agreement. At the signature ceremony, Mr Al-Herbish expressed his satisfaction in signing an agreement that aimed at combating energy poverty in underserved regions of Morocco, which is in line with the Energy for the Poor Initiative launched in 2008 by the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud of Saudi Arabia. The OFID-co-financed project also falls in line with the country’s Energy Plan that was sanctioned by King Mohammed VI of Morocco.
Ethiopia. US$20 million. Arba- Rakati-Gelemso-Michata Road Upgrading: Lot 1 “Arba-Rakati-Gelemso.” The project will pave a 57.5 km stretch of gravel road that traverses areas where important cash crops are cultivated. This will help boost revenues and improve food security for around one million individuals. This loan is a continuation of a long-established cooperation between Ethiopia and OFID, which includes 22 public operations amounting to US$228 million and 10 national grants. The agreement was co-signed by HE Ahmed Sufian, Minister of Finance and Economic Development of Ethiopia.
Under OFID’s Trade Finance Facility, a US$50 million LOC agreement was signed with the PTA Bank. The LOC is the second facility OFID extended to PTA Bank, which will allow it to support the trade requirements of Eastern and Southern Africa country SMEs. The agreement was countersigned by PTA Bank President and Chief Executive Officer Mr Admassu Tadesse.
Since its inception, OFID has committed over US$15.4 billion in much-needed concessional development financing to 134 developing countries around the world, with priority given to the poorest amongst them.
